Service tax appellate limitation and hearing rights required remand after the incorrect limitation regime was applied.

The appellate limitation regime for service tax matters had to be applied under the Finance Act, 1994, not by importing the Central Excise Act, 1944 limitation scheme. The order was also vitiated because it was passed without granting the assessee a reasonable opportunity of hearing. The impugned order was therefore set aside and the matter remitted to the Commissioner (Appeals) for fresh decision on merits after affording a hearing to the appellants.

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Issues: Whether the Commissioner (Appeals) applied the correct limitation period under the Finance Act, 1994, and whether the impugned order, passed without granting a hearing, was liable to be set aside and remanded.

Analysis: The appeal turned on the correct appellate limitation regime applicable to service tax matters. The order under challenge proceeded on the basis of the limitation scheme under the Central Excise Act, 1944, whereas the applicable provisions for the assessee were those under the Finance Act, 1994. The impugned order was also made without affording a reasonable opportunity of hearing.

Conclusion: The impugned order was set aside and the matter was remitted to the Commissioner (Appeals) for fresh decision on merits after granting a reasonable opportunity of hearing to the appellants.

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